Barkley Company’s adjusted trial balance on March 31, 2013, its fiscal year-end, follows.

On March 31, 2012, merchandise inventory was $ 37,500. Supplementary records of merchandising activities for the year ended March 31, 2013, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . . . $ 138,500
Purchase discounts received . . . . . . . . . . . . . . . . . 2,950
Purchase returns and allowances . . . . . . . . . . . . . 6,700
Costs of transportation- in . . . . . . . . . . . . . . . . . . 5,750

Required
1. Calculate the company’s net sales for the year.
2. Calculate the company’s total cost of merchandise purchased for the year.
3. Prepare a multiple- step income statement that includes separate categories for selling expenses and for general and administrative expenses.
4. Prepare a single- step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrativeexpenses.

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Debit Credit Other (noninventory) assets....202600 Total liabilities ..._ 42,500 64,425 C. Barkley, Withdrawals. 3,000 Sales 332,650 S. Sales discounts... Sales returns and allowances .. 5,875 20,000 Cost of goods sold..*__. .115,600 44,500 16,000 3,850 26,000 40.750 3,800 Sales salaries expense Rent expense -Selling space. Advertising expense .. Office salaries expense Office supplies expens Totals $539,575 $539,575